KANISA SAVINGS AND CREDIT COOPERATIVE SOCIETY INFORMATION HAND-BOOK

Transcription

1 KANISA SAVINGS AND CREDIT COOPERATIVE SOCIETY INFORMATION HAND-BOOK Building Our Economic Base Through Saving and Borrowing

2 VISION STATEMENT To be the leading one-stop financial institution providing diverse products and services for members economic empowerment. MISSION STATEMENT To promote thrift, prudent management, member participation, regular education, development of dynamic systems that will ensure growth, security of funds and encourage a positive organizational culture. MOTTO Building Our Economic Base Through Saving and Borrowing

3 KANISA SACCO SOCIETY LIMITED INFORMATION HANDBOOK

4 ABOUT KANISA SACCO KANISA SAVINGS AND CREDIT CO-OPERATIVE SOCIETY was founded on and still pursues the principle of enhancing members economic foundation, by encouraging and promoting a culture of saving supported by effective and responsible leadership. The Society was founded formally by the staff of All Africa Conference of Churches (AACC) in 1981, though its conception and deliberations on its establishment started much earlier. Since then, it has grown a strong financial base and attracted more than 20 institutions both faith-based as well as non-faith based. In addition to this, it has also attracted many individual contributing members. The Society opened its common bond to bring together members of different nationalities living, working and operating in and out of Kenya provided they meet membership conditions and are willing to adhere to the By-Laws. Joining and saving with KANISA is one such experience that one would not wish to miss. Success stories of those who have benefitted from the SACCO are galore. KANISA has developed and continues to maintain relationships with and membership to various Cooperative apex bodies within Kenya which include the Kenya Union of Savings & Credit Co-operatives Limited (KUSCCO). KANISA SACCO PHILOSOPHY Vision To be the leading one-stop financial institution offering diverse products and services for members economic empowerment. 4 Kanisa SACCO Limited information hand-book

5 Mission To promote thrift, prudent management, members participation, regular education, development of dynamic systems that will ensure growth, security of funds and encourage a positive organizational culture. Core Values The core values of KANISA SACCO are integrity, transparency, professionalism and teamwork. In addition to these, KANISA SACCO is also founded on the general cooperative values of selfhelp; self responsibility; democracy; equality; equity; and solidarity. MEMBERSHIP The KANISA SACCO membership is in three categories namely: Employees of various organizations/corporate bodies; Individual contributors; and KANISA SACCO Staff. The institutions currently associated with KANISA SACCO are: 1. African Council of Religious Leaders Religions for Peace (ACRL RfP) 2. All Africa Conference of Churches (AACC) 3. ARBA Publications Limited 4. Christian Aid 5. CWS - RSC Africa 6. Church World Service Eastern-Africa (CWS-EA) 7. Crown the Child Africa (CCA) 8. Diabetes Management Institute (DMI) Kanisa SACCO Limited information hand-book 5

6 9. Express Automation 10. Freight Commandos 11. Fellowship of Christian Councils and Churches in the Great Lakes and Horn of Africa (FECCLAHA) 12. Green Growth Coordination Secretariat (GGCS) 13. Film Aid 14. Inter-Religious Council of Kenya (IRCK) 15. Jamii Auto Care 16. Kenya Scouts Association 17. Life & Peace Institute (LPI) 18. Longrock Tours and Travel 19. Lutheran World Federation (LWF) 20. Lutheran World Relief (LWR) 21. Partners Worldwide 22. Programme for Christian-Muslim Relations in Africa (PROCMURA) 23. Sankara Hotel 24. World Scouts Bureau (WSB) Membership Conditions Irrespective of the category of membership, an applicant will be considered for membership upon meeting the conditions as set out in the By-Laws but shall only qualify for rights and privileges of membership upon:- Filling and submitting membership application and nominees forms; 6 Kanisa SACCO Limited information hand-book

7 Payment of non-refundable admission fee of one thousand Kenya Shillings (KShs. 1000/-) only; and Payment of at least three hundred (300) non-refundable but transferable shares at twenty Kenya Shillings (KShs. 20/-) each Upon admission into membership, one shall remain an active member by: Duly remitting a monthly minimum contribution of two thousand Kenya Shillings (KShs. 2,000/-); Paying his/her loan (where applicable) including interests without fail; and Adhering to the KANISA SACCO By-Laws and all developed and operational policies SERVICES TO MEMBERS KANISA SACCO continuously develops services, which include loans, through engagement with and examination of the existing internal and external situations towards ensuring that members needs are met. Currently, there are thirteen types of loans; various loan products; and strategic services all tailor-made to suit the needs of the members. LOANS Principal or Development Loan The current maximum limit is KShs. 3 Million or three times the member s deposits; Interest rate is 1% per month on reducing balance; Repayable within a maximum period of 48 months; and Other credit terms and conditions apply. Kanisa SACCO Limited information hand-book 7

8 Emergency Loan Maximum of two emergency loans at any given time; Up to KShs. 400,000 for the two emergency loans repayable in 12 months; Interest rate is 1% per month on reducing balance; Caters for emergencies such as hospitalization; school fees and other unforeseen sudden expenditures; and Other credit terms and conditions apply. Mjengo Loan Maximum Loan amount of KShs. 4,000,000 or as per the valuation of the collateral; Interest rate at 13.5% per annum (1.125% per month) calculated on amortization basis; Maximum repayment period of 72 months (6 years); Loan disbursed subject to availability of funds; Member to provide collateral in form of Title Deed which shall be charged for the full amount taken. The loanee will bear all costs relating to valuation, charging and discharging of the Title Deed; The loanee must provide certified and registered construction plan; The construction plan submitted will be independently verified by KANISA SACCO service providers at the cost of the loanee; and All other credit terms and conditions apply 8 Kanisa SACCO Limited information hand-book

9 Mali Mali Loan This product will enable members to purchase assorted products from Kanisa SACCO strategic partners e.g. Safaricom Limited, Unilever (Pure it Device), Water Tank Suppliers etc. with the following features, terms and conditions: - The maximum loan amount for this product is KES 100,000; The maximum repayment period is 12 months; Interest on this loan will be charged at a rate of 1% calculated on a reducing balance formula; All approved loans will be disbursed through cheques payable to the vendor or supplier; and All other credit terms and conditions apply. KHL Property Loan This product will enable members to acquire property being sold by Kanisa Holdings Limited and is designed with the following features, terms and conditions:- This loan product shall solely be used to acquire Kanisa Holdings Limited properties on offer; The amount applied for should be equal to or less than (whichever is applicable) the cost of the property that the member is acquiring less the commitment fee and any other amounts paid towards purchase of the property; All approved loans will be paid directly to Kanisa Holdings Limited; The security of the loan will be the property being purchased, and the transfer of ownership will only be done after the completion of the loan repayment. No guarantors will be required; The maximum loan repayment period will be 24 months; Interest rate of 10% per annum calculated on amortization basis; Kanisa SACCO Limited information hand-book 9

10 The property will be charged at the expense of the loanee in favour of Kanisa SACCO. Discharge of the property will be done only upon clearing the loan and also at the expense of the loanee; No valuation will be required prior to charging of property sold by Kanisa Holdings Ltd to Kanisa SACCO members. The property will be charged at the value of the sales price; A default for a period of sixty (60) days will result in the property under consideration being re-offered for sale to other interested parties and a refund of the monies paid by the loanee so far under this product less 10% of the value of the property; and All other credit terms and conditions apply. Car Loan Maximum Loan amount of KShs. 1,000,000 Interest rate at 14% per annum (1.167% per month) calculated on a reducing balance basis; Maximum repayment period of 36 months (3 years); The motor vehicle must be valued by KANISA SACCO s identified valuer; and be on a CIC comprehensive insurance for the duration of the loan; Payment shall be made directly to the seller after provision of a signed sale agreement through an agreed mechanism but which do not contradict the SACCO s Financial and Credit Policies; The loanee will bear all valuation charges, insurance premium costs and all other related charges and costs; and All other credit terms and conditions apply. 10 Kanisa SACCO Limited information hand-book

11 Instant Loans Maximum of two instant loans of KShs. 50,000/= at any given time; An up-front deduction of loan premium and interest at 3% per month on reducing balance will apply; Maximum repayment period is 6 months; The first instant loan does not require guarantors; The second instant loan will require guarantors; and All other credit terms and conditions apply. Elimu Loan Interest rate of 10% on amortization basis; Maximum repayment period is 24 months; Fee structure must be attached; At least seventy percent (70%) of the amount applied must go towards payment of school fees and the balance amount may be paid to the member for the purchase of stationeries, uniforms and other school related items where applicable; No administrative fee will be charged per loan; Disbursed through banker s cheques payable to the preferred institutions; The cost of the banker s cheque will be paid by the loanee; and All other credit terms and conditions apply. Sukuma Mwezi Loan The Minimum amount for this product is KShs. 4,000/= while the maximum is KShs. 10,000 in one particular month; An interest of 10% will be charged up-front; The repayment period is 1 (one) month No guarantors or collateral will be required; and All other credit terms and conditions apply. Kanisa SACCO Limited information hand-book 11

12 Trustee Loan: This loan is applicable only to the guarantors of a defaulted loans in lieu of the defaulted amount being recovered from their deposits; The maximum repayment period for this loan will be 6 months, or the original remaining period whichever is longer If the repayment period extends beyond the period of the original loan, then the extended /exceeding amount will need to be insured by the trustee Interest on this loan will be charged at a rate of 1% calculated on a reducing balance formula; If a loan defaulter repays his/ her defaulted amount after his/her guarantors have taken up this product, the amount received will be used to clear the guarantor s trustee loan; A default of this loan for a cumulative period of sixty (60) days will result in the outstanding loan amount being recovered from the loanee s deposits without further notice to the loanee; This loan will not require any guarantors; and All other credit terms and conditions apply. IDL (Interest on Deposits) Loan Maximum amount of 50% of the projected year s undeclared interest; Application will be open in the month of February; Interest rate of 5% will be charged upfront; and All other credit terms and conditions apply. 12 Kanisa SACCO Limited information hand-book

13 Vision Loan The loan will be granted to a maximum of four (4) times of the member s deposits; The maximum loan amount will be five (5) million Kenya Shillings; The maximum repayment period will be seventy two (72) months; Interest rate per month will be 1.125% calculated on an amortization basis; The loanee will be required to pay 0.2% of the loan amount applied or the normal deposit as outlined in the credit policy, whichever is higher, as his/her monthly deposits for the entire duration of the loan; Loan amounts in excess of two (2) million Kenya Shillings will require additional collateral as per the credit policy; The loan can be refinanced, factored and consolidated; In using the Vision Loan to offset another single loan, the terms and conditions of factoring shall apply; In using the Vision Loan to offset several loans, the terms and conditions of consolidation shall apply; A member taking this loan and utilising more than three (3) times of his/her deposits, will automatically lockout himself/herself from taking any other loans until such a time as when his/her deposits utilised towards the Vision Loan shall fall to below three (3) times of his/her deposits; and All other credit terms and conditions apply. Kanisa SACCO Limited information hand-book 13

14 LOAN PRODUCTS AND STRATEGIC PARTNERSHIP SERVICES KANISA SACCO develops, from time to time, products that meet its members expectations. Currently, such products include: (a) Loan-Related Products i) Refinancing This is to help a member top-up his/her existing loan. No fee is charged for this product but the repayment must be completed within the remaining period of the original loan. ii) Factoring KANISA SACCO can clear a member s principal loan balance at a fee of 5%, to enable a member apply for another principal loan immediately. However, the loanee must have paid 50% of the principal loan, otherwise 7.5% of the loan balance will be charged. Other terms and conditions of a principal loan will apply. iii) Consolidation This allows a member to merge all of his/her existing loans into one at a fee of 10% of the total loan balances. This then allows one to borrow other loan(s). iv) Deposit Boosting Facility: - This product will enable a member to boost his/her deposits and qualify for a loan immediately. Under the following features, terms and conditions:- The boosting amount for the purpose of immediate loan taking shall not exceed, at any particular time, KES 200,000; 14 Kanisa SACCO Limited information hand-book

15 A fee of 10% of the boosted amount will be charged and this fee will be deducted upfront; and All other credit terms and conditions apply v) Zidisha Deposit Boosting Facility This is a facility whereby a member applies for his/her deposits to be boosted for the purposes of qualifying for a bigger loan and the boosting amount is paid by the Society ; A fee of fifteen percent (15%) will be charged on the boosted amount and this shall be deducted up-front from the loan applied; The Society will deduct the boosting amount and boosting fee from the loan applied, post the boosting amount to the loanee s deposits, and pay-out the balance of the loan to the loanee; One shall qualify for only Ten (10) times the average of his/her last three months contribution and up to a maximum of Kenya Shillings One Hundred Thousand (Kes 100,000/-) ; A member shall qualify for the facility only once every six (6) months; This facility shall not apply to the Sukuma Mwezi, Malimali and Instant Loan loan products; and All other credit terms and conditions apply vi) Karibu Loan This loan product is meant to benefit new members who have not finished six (6) months as required by the By-laws. a) Available to new members who have not finished six (6) months; Kanisa SACCO Limited information hand-book 15

16 b) Amount applied should not be more than the members deposits; c) Interest of 10% and insurance charges shall be deducted upfront from the applied and approved amount; d) Repayable period shall not be more than a period of Twelve (12) months from the date of approval; e) A member should have fully paid share capital as required by the by -laws; f) No guarantors needed; and g) All other credit terms and conditions apply b) Strategic Partnership Services KANISA SACCO, through strategic partnerships with relevant agencies, develops specific services in order to ensure that members meet their daily obligations and needs in a contextual environment. These go along way to improve members economic and general welfare. Some of the current specific products on offer to members are: (i) Personal Motor Vehicle Insurance KANISA SACCO acts as an agent with an appointed insurance company through which it facilitates, for the interested members, purchase of personal motor vehicle insurance cover. Currently the service is being provided by CIC INSURANCE at a rate of 4% of the value of the vehicle. While this service does not attract any interest from the society, repayment for a period of 12 months begins immediately the cover is issued. 16 Kanisa SACCO Limited information hand-book

17 (ii) Water Tank Necessity is the mother of invention, so it is said. This product was initiated to help members address the challenges of water shortage and rationing by acquiring tanks. (iii) Mobile Devices Members are able to purchase mobile devices from various companies eg. Safaricom Limited through the SACCO. (iv) Jikokoa Members can now get energy saving Jikos through Kanisa SACCO at an affordable price. LOAN SECURITY AND COLLATERAL Guarantors and member s deposits form the core security for loans except when the amount applied for is equal to or less than a member s free deposits (Uncommitted deposits after taking into account all loans guaranteed by a member), and if such member has not guaranteed anybody as at the time of loan application. In the event of default, the guarantors shall be the first point of reference for loan recovery. Additional security in form of collateral is needed for the loans that are more than KShs. 2 million unless such loan is fully covered by the member s deposits and such member has not guaranteed anyone else for loan. In addition to the current use of guarantors as loan security / collateral, the following are other ways in which members can secure their loans with Kanisa SACCO: Kanisa SACCO Limited information hand-book 17

18 1. Use of Title Deeds a) Members can access loans by using collateral in form of land Title Deeds in lieu of and/or in addition to guarantors; b) Members will be able to access loans up to 80% of the force sale value of the land; c) The Title Deed shall be valued and charged at the borrower s expense; d) The loan shall be disbursed only after the charging process is complete; e) In case of default and the land is sold to recover the defaulted amount the Society shall be under no obligation to sell the land at a price more than the defaulted amount and any interest incurred; and f) Other Credit terms and conditions shall apply 2. Use of Member s Scheme Fund a) A member can make use of his/her Savings Scheme as security to his/or her loan; b) Savings used as security shall be locked and shall remain inaccessible for withdrawal till the loan is cleared; c) A member who has defaulted his/her loan shall have his/her savings inaccessible for the use as security; and d) Other credit terms and conditions shall apply 18 Kanisa SACCO Limited information hand-book

19 KANISA SACCO SAVINGS SCHEME In order to ensure multifaceted approaches to strengthening the culture of saving among members, KANISA has developed and is currently managing two types of Savings Schemes one for members and another one for their children. This is also to enable the future membership of KANISA (members children) start inculcating a saving culture at an early stage. Jiokoe Savings Scheme Allows members to save with the society in addition to the ordinary deposits. Only members of the KANISA SACCO Society can join the scheme and there is no entry fee; The minimum contribution per month for the savings scheme is KShs. 1000/=; and The minimum book balance shall be KShs. 500/= (can only be withdrawn when closing the account) Mwanangu (Children s) Savings Scheme The scheme shall only be opened and operated by members for their children; The account shall be in the name of the child/children but in full custody of the member; The Child/Children s birth certificate will be required during the opening of the account and a copy shall be retained for record purposes; No minimum monthly contribution A minimum waiting period of 1 year shall be in place before a member can withdraw their savings; The savings scheme to earn a guaranteed minimum interest rate of 4% p.a.; and Membership terms and conditions apply Kanisa SACCO Limited information hand-book 19

20 LEADERSHIP AND MANAGEMENT There are two main committees -The Central Management Committee (CMC) and the Supervisory Committee (SC) - which have respective roles in managing the affairs of the Society. The Central Management Committee (CMC) This is the governing authority of the Society and directs all its affairs as per the direction from the Annual General Meeting (AGM). Its sub-committees mainly include the Executive, Credit and Education Committees. The Supervisory Committee (SC) This Committee is responsible for ensuring that the Society is compliant with all rules, regulations and internal controls as set out in the Society s By-Laws. Members of this Committee are directly elected by and reports to the AGM. MEETINGS Annual General Meeting (AGM) The AGM is the supreme authority of KANISA SACCO and it sets the agenda for the Society. Every member of the Society of good standing has a right to attend, participate and vote (on all matters) and/or be voted into leadership position at the Annual General Meeting (AGM). Non-attendance of the AGM attracts a fine. Education Day The members Education Day, held annually, is meant to educate and create awareness among members on specific and thematic issues of the Society, in particular, and the SACCO movement, in general. Members are required to attend and participate in full. Non-attendance attracts a fine. 20 Kanisa SACCO Limited information hand-book

21 CORPORATE SOCIAL RESPONSIBILITY KANISA SACCO, in upholding the co-operative principal of concern for community, undertakes corporate social responsibility activities on an annual basis. In the past, such activities have included visits to children s homes and to victims of natural disasters such as fire or famine. Kanisa SACCO Limited information hand-book 21

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23 PAYMENT DETAILS Members can make deposits in the following KANISA SACCO bank accounts and present deposit slips to the office for receipting. 1. Co-operative Bank of Kenya, Westlands Branch, Account No Commercial Bank of Africa, Westlands Branch, Account No NB. Members to ensure that their names and membership numbers appear on the bank slip 3. M-Pesa Paybill No , Acc. No. KS...(Remember, M-Pesa account number is your membership number, that is (KS...) Kanisa SACCO Limited information hand-book 23

24 Kanisa SACCO Society Ltd, Desmond Tutu Conference Centre All Africa Conference of Churches (AACC) Waiyaki Way, Opposite Safaricom House, P. O. Box , Nairobi Telephone: , Mobile: , , Facebook: Twitter: Website: